Marriott International beat earnings and revenue estimates last quarter, and has lifted its guidance despite travel disruptions in the Middle East.
Earnings per share were US$2.72, up from $2.32 one year ago and above the Zacks consensus estimate of $2.58. Revenue increased 6% to $6.65 billion, surpassing estimates by 0.90%.
“We delivered excellent first quarter results, reflecting the strength of our brands, our unmatched global footprint, and the resilience of demand for travel,” said CEO and president Anthony Capuano.
“As we look ahead to the rest of this year and beyond, we are confident that our leading global scale and strong brand portfolio, our powerful Marriott Bonvoy travel platform and loyalty program, our dedicated associates, and our asset-light business model continue to position us very well for sustainable, long-term growth.”
Revenue per available room (RevPAR) grew 4.2% globally. It rose 4.0% in the United States and Canada to $128.80, and increased 4.6% to $112.01 internationally.
Operating income was up 12% to $1.06 billion. Operating expenses fell 5% to $5.59 billion due to an increase in reimbursed expenses.
Travel disruptions in the Middle East during the Iran war began to impact both Middle Eastern and some Asia Pacific markets in March, Capuano said on an earnings call. It expects that these impacts will continue through the end of 2026, with a 50% cut to its RevPAR in the Middle East in the second quarter.
The company projected 1.5-2.5% growth in global RevPAR for the second quarter, and lifted its full-year guidance to 2.0-3.0% growth across 2026. Its previous full-year RevPAR growth forecast was 1.5-2.5%.
This includes a 30-35 basis point boost from the 2026 FIFA World Cup, which will be held in June and July.
Shares in Marriott (NASDAQ: MAR) closed 1.3% higher at $359.06, and increased a further 0.6% after-hours. Its market capitalisation is $95.13 billion.
